The 2021 Nissan Versa isn’t trying to reinvent the automobile, but it’s making iterative and significant improvements to the budget-car formula that land it solidly in the middle of the dwindling compact sedan playing field. 

Originally a hatchback targeted to young car buyers and best known for being the cheapest new vehicle on sale in America, the third generation debuted last year. With this redesign, the Versa has evolved into a more substantial sedan-only affordable starter car for buyers looking for space and value. At 177 inches long, it’s grown into a proper compact, though it still competes primarily with the smallest and cheapest subcompact cars on the market. 

The 2021 Nissan Versa is equipped with a 122-horsepower 1.6-liter four-cylinder engine paired with a standard five-speed manual transmission or continuously variable transmission. Nissan

With a low starting price point of $15,930 (including a $950 destination fee), vast amounts of horsepower is off the table, which is why the weak four-cylinder engine that powers the new Versa shouldn’t come as a big surprise. 

It delivers 122-horsepower and 116 pound-feet of torque to the front wheels and gets winded quickly, especially when trying to build speed on the highway. A dying breed, the base S model is equipped with a standard manual transmission or optional continuously variable automatic transmission (CVT). The CVT is the only drivetrain offered on the mid-grade SV and top-of-the-line SR trim. The CVT is smooth, but low power output means acceleration is poor and merging into traffic on the highway is a challenge.

Those issues aside, the Versa offers several pleasant surprises. To start, the cabin is striving to be a cut above what is expected of budget wheels. 

The Versa’s interior is available in standard Charcoal, Graphite for SV grade, and Sport in the top-of-the-line SR grade. Nissan

Earlier generations of the Versa were always big and spacious for their class, and Nissan has built upon that reputation with even more front-row leg room. The front row offers a generous maximum of 44.5 inches of legroom in the front row, but the tradeoff comes at the expense of the second-row passengers, who have only 31 inches of stretch. That’s a little less than the Kia Rio and quite a bit less than the Mitsubishi Mirage G4, despite the fact that the Versa is considerably larger than either of those designs. The extra length goes into the car’s 15 cubic-foot trunk, which is bigger than a Volkswagen Jetta’s.

While buyers tend not to expect much from a starter car, the cabin design is clean and modern without seeming spartan. A 7-inch touchscreen is included on all models and Apple CarPlay and Android Auto are found on the SV and SR trim. All trims have Google Assistant Voice Recognition, hands-free text messaging and three USB ports, but navigation is strictly BYO.

The Versa is a perfectly capable little sedan on the road. Its compact size makes it easy to park and nimble enough to zip through city traffic. The handling is acceptable and the steering feel direct, but the performance envelope is modest, and it isn’t built for fun like the now-discontinued Honda Fit.

On the highway and at a steady cruise, the Versa is a willing and able partner that returns solid fuel economy, even among the fuel-sipping subcompact field. The Versa’s 32 mpg city, 40 mpg highway and 35 mpg combined ratings are only 1-2 mpg behind the smaller Rio and Mirage.

: The Versa features expressive exterior styling with a more imposing V-motion grille, boomerang-shaped headlamps and tail lamps and larger wheels. The mid-grade SV models are equipped with 16-inch wheels while the SR trim uses 17-inch wheels. Nissan

Driving the 2021 Versa doesn’t always feel a car built to a low price point, and that’s certainly true when browsing the list of standard features. Basic equipment includes keyless entry and push-button start and a slew of advanced driver assistance technology, such as forward and rear automatic emergency braking with pedestrian detection, a rearview monitor, lane departure warning and high beam assist. Adaptive cruise control is also optional.

Upgrading to the mid-level SV trim ($18,740 with destination fee) replaces the standard 15-inch wheels with 16-inch alloy wheels and adds blind spot monitoring, rear cross-traffic alert, driver monitoring and rear seat reminder. The infotainment screen is also updated to a NissanConnect unit with more functions than the base model. 

The top SR trim ($19,340) adds LED headlights, fog lights, sport cloth seats, rear spoiler and 17-inch wheels (a first for a Versa). Adaptive cruise control, automatic climate control and heated seats are optionally available on the top trim through the Convenience Package ($400). It’s worth spending slightly more for these niceties, especially if optimizing value is a goal.

 The Versa’s interior is a comfortable place, especially up front, and the cabin materials don’t make passengers feel like it’s an economy car. A 7-inch touchscreen is standard, with a a 7-inch NissanConnect screen, with some additional features including Apple CarPlay and Android Auto integration, included on the SR and SV trims. Nissan

Aside from its driver-assist gear, the Versa also gets a five-star rating from the National Highway Transportation Safety Administration. It earned four stars overall in frontal crash tests and five in side-impact testing. The Insurance Instutute for Highway Safety hasn’t full evaluated the 2021, Versa, but it did earn Good ratings in IIHS’s side-impact and moderate-front-overlap tests.

Does the Versa deliver a knockout punch to its rivals? No, but it definitely deserves to be cross-shopped with some of the best in the subcompact field, such as the Honda Fit, Kia Rio, Chevrolet Sonic and Toyota Yaris. With sportier styling, modern interior and impressive list of standard features, the Versa can finally hold its own with the competition in more areas than just affordability.

The Versa’s styling is derived from the larger Sentra and Altima sedans. Though the proportions are smaller and taller than its big sisters, it’s a handsome machine for a budget-minded car. Nissan